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Oct 1, 2012
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we had an answer from charlie evans this morning. he thinks the fed should keep adding to its balance sheet. right now what it's doing with operation twist is selling short-term securities and buying long-term ones. the effect of that is neutral as to the size of the balance sheet. charlie evans says he wants to take the $40 billion they're spending on mortgages, continue that but do a total $85 billion net addition to the balance sheet. i'd like to ask fed chairman ben bernanke if that's what he expects. >> let's listen in here. obviously i was struck, steve, by how sort of full-throated -- i've used that phrase several times and i apologize for that -- but his defense was of fed policy. will that quell any of his critics? >> i don't think so. i think really people have dug in their heels on this. i think the one question and one criticism has been about inflation. to the critics, where is the inflation. >> sorry to interrupt. let's listen to some questions. >> -- the staff will be through to pick them up or you can just bring them
we had an answer from charlie evans this morning. he thinks the fed should keep adding to its balance sheet. right now what it's doing with operation twist is selling short-term securities and buying long-term ones. the effect of that is neutral as to the size of the balance sheet. charlie evans says he wants to take the $40 billion they're spending on mortgages, continue that but do a total $85 billion net addition to the balance sheet. i'd like to ask fed chairman ben bernanke if that's what...
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Oct 1, 2012
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there is he. >> well, get me off, get charlie on. there we go. >> i ask a couple of people this already i think, president owe vans, that was when we saw the size and the magnitude of the latest moves, qe moves, a lot of people thought that things must be a lot worse than what we were led to believe and we thought we'd see some numbers that would make that apparent. we haven't seen numbers that are making that apparent, and i guess if you consider that it's a dual mandate, as long as we're above 8%, anything is justified. is that the thinking of the fed at this point, and i guess if inflation's low you can satisfy that mandate as well. you could even say that inflation's below our target so you're satisfying both mandates, but was that the thinking, there was really nothing worse than the rest of us thought in the economy when you decided to do this? >> well, that's a good question. i think that it's evident the data softened during the summer and this ends up being the third summer that we've seen the data soften from a first year,
there is he. >> well, get me off, get charlie on. there we go. >> i ask a couple of people this already i think, president owe vans, that was when we saw the size and the magnitude of the latest moves, qe moves, a lot of people thought that things must be a lot worse than what we were led to believe and we thought we'd see some numbers that would make that apparent. we haven't seen numbers that are making that apparent, and i guess if you consider that it's a dual mandate, as long...
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Oct 1, 2012
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i talked to charlie evans this morning. he was one of the advocates of what we're calling the q.e. infinity program, the idea of keeping your foot on the accelerator, the central bank keeping its foot on the accelerator as long as employment remained above 7%. just a little background, the fed did not go with evans' specific proposal but did create an open-ended quantitative easing. so i asked him, how open-ended is it? what happens at the end of this year when operation twist ends? what happens to additions to the balance sheet? here's what he said. >> i frankly think it's going to take almost a year in order to see the type of improvement in labor markets that i'm expecting, just getting through the first half of next year with the headwinds that we're facing. i think that it's probably later in 2013 that we would get there. so in my opinion, we'd continue with those asset purchases until we see payroll employment more like 200,000, 250,000. >> continue at $85 billion into all of 2013? >> this is my recommendation. >> it's important to parse it just a little bit. remember that pa
i talked to charlie evans this morning. he was one of the advocates of what we're calling the q.e. infinity program, the idea of keeping your foot on the accelerator, the central bank keeping its foot on the accelerator as long as employment remained above 7%. just a little background, the fed did not go with evans' specific proposal but did create an open-ended quantitative easing. so i asked him, how open-ended is it? what happens at the end of this year when operation twist ends? what...
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Oct 3, 2012
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that's what charlie evans is saying, in effect, they are seeing into the future, they say, and improving the future, but before it can come to pass. d tt succeeding. >> i think 34 -- if you're going to measure a yardstick in another realm, it is 34.3, isn't it? >> no, it's 36. >> it's relativity. length contraction time -- >> that's part of the problem. that's part of the problem. >> you've heard of length contraction and time dilation, right? >> we should talk in simple terms, joe. >> not general relativity. but einstein made a fortune in physics. so you're saying that -- i mean at 8%, you're not feeling the pain of all these people that are out of work. and we've got no fiscal solutions, we've got a deadlocked congress, congress can't do anything, they're the only game in town. that's got to help. >> empathy is not the way forward. the way forward is to think through the problem. >> it is staggering that they think they need to make -- >> they have an atlas complex, which is not helping. >> they should be shrugging. >> it's hindering. >> ben bernanke sets up as the world's leading auth
that's what charlie evans is saying, in effect, they are seeing into the future, they say, and improving the future, but before it can come to pass. d tt succeeding. >> i think 34 -- if you're going to measure a yardstick in another realm, it is 34.3, isn't it? >> no, it's 36. >> it's relativity. length contraction time -- >> that's part of the problem. that's part of the problem. >> you've heard of length contraction and time dilation, right? >> we should...